Not at 96,000 a year they wouldn’t likely need beans and rice . . . but debt can chew you up regardless of income. My point was general, people that do illegal or immoral things “for the children” have lost their balance and often end up hurting the children as well as themselves.
That being said, here's the way it seems to have played out to me.
She was married with three kids - probably the family was living beyond their means, maybe a too-nice-to-afford house with a big mortgage.
She has "marital problems" - i.e., most likely she and her husband got separated and he moved out. Without his income - and probably a year or more away from some kind of support payments or alimony - she declares bankruptcy because she is now officially way over her head financially.
Hooking pays her $90 in cash an hour ($180 with a 50% split to the shocked, shocked Miss Palfrey). Five hours of "work" a week is quite a supplement.
You mentioned disease earlier - most likely the clients were using protection. She says she refused certain clients - I'm going to guess her refusal was based on their desire to engage in higher-risk behavior. Not foolproof - but different from most street prostitutes, I would guess.
We learn further that she quit for a time - perhaps she anticipated a reconciliation? - and then she offered Palfrey her services again months later, presumably because the divorce was now final.